The U.S. Treasury Dept. broadened the Obama Administration’s foreclosure-prevention program on Apr. 28 in a bid to resolve a persistent obstacle to cleaning up problem mortgages. But some financial officials say the fledgling program’s success still hinges on controversial legislation pending in Congress, which is also expected to take up another contentious bill that would allow bankruptcy judges to reduce the principal owed on a home.
Although the Administration announced an ambitious housing-assistance program in February and released detailed parameters in early March, progress has been slowed by an obstacle all too familiar when it comes to modifying mortgages: second liens. Read more about the foreclosure plan…
